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Omnichannel integration strategy based on BOPS.

Meirong Tan1,2, Hao Li1, Pei Yin3

  • 1School of Economics and Management, Chongqing Jiaotong University, Chongqing, China.

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Summary
This summary is machine-generated.

The Buy-Online-and-Pick-up-in-Store (BOPS) omnichannel strategy boosts revenue with moderate distance costs. The Buy-Online-and-Pick-up-in-Store-and-Return-Online (BORO) strategy benefits offline stores more, influenced by match probability, distance, and returns.

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Area of Science:

  • Business Strategy
  • Operations Research
  • E-commerce

Background:

  • Consumer preferences and technological advancements drive the new retail omnichannel model.
  • Integrating online and offline channels is crucial for personalized, seamless customer experiences.
  • Optimizing omnichannel strategies presents a complex industry challenge.

Purpose of the Study:

  • To analyze the pricing game of Buy-Online-and-Pick-up-in-Store (BOPS) between offline and e-commerce channels.
  • To propose and evaluate the Buy-Online-and-Pick-up-in-Store-and-Return-Online (BORO) strategy.
  • To assess the impact of BOPS and BORO on market share and revenue.

Main Methods:

  • Game theory analysis of a BOPS pricing model.
  • Inclusion of match probability and network return costs in the model.
  • Comparative analysis of BOPS and BORO strategies' effects on channel performance.

Main Results:

  • BOPS increases revenues for both channels only with moderate distance costs.
  • The BORO strategy yields greater benefits for offline stores than e-commerce departments.
  • Match probability, distance cost, and product return significantly influence BORO strategy effectiveness.

Conclusions:

  • Omnichannel strategies like BOPS and BORO offer significant theoretical and practical insights for retail channel management.
  • Strategic channel integration is key to maximizing benefits in the evolving retail landscape.
  • Understanding influencing factors is vital for optimizing omnichannel performance.